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France's Macron, China's Xi agree to advance on cognac trade dispute
Published by Global Banking & Finance Review®
Posted on May 22, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on May 22, 2025
2 min readLast updated: January 23, 2026
Macron and Xi agree to resolve the cognac trade dispute quickly, aiming to improve China-France trade relations amid broader EU-China tensions.
PARIS (Reuters) -French President Emmanuel Macron and China's President Xi Jinping agreed in a phone call to advance as quickly as possible towards ending a dispute over cognac tariffs, Macron wrote in a post on social media platform X on Thursday.
Macron, who spoke to Xi ahead of his trip to Southeast Asia starting on Sunday, said he reaffirmed that Chinese investments were welcome in France but that companies must enjoy equitable conditions in the two countries.
"It's a fundamental point," Macron wrote.
After trade tensions flared between Beijing and Brussels, China began an anti-dumping investigation into European Union brandy in January. It was extended in April, giving EU exporters more time to find a way to avoid Chinese penalties.
In France, the Chinese anti-dumping probe is regarded as retaliation for Paris' support for EU tariffs on imports of Chinese electric vehicles.
Separately, Xi said China and France, both permanent members of the United Nations' Security Council, should strengthen cooperation to maintain the rules of international trade, the world economic order and practice "genuine multilateralism," according to China's state broadcaster CCTV.
"The more complicated the international situation becomes, the more China and France should make the right strategic choices and work together to be a reliable force in maintaining international order," Xi said, according to CCTV.
"China has always regarded Europe as an independent pole in the multi-polar world, supports the EU in strengthening its strategic autonomy and playing a more important role in international affairs, and is willing to join hands with the European side to tackle global challenges and reach more results that benefit both sides and the world," he added, according to the CCTV report.
China and the European Union, in which France is a major player, are both also separately embroiled in trade disputes with the United States.
(Reporting by Dominique Vidalon and Makini Brice in Paris and Ethan Wang in Beijing)
Macron and Xi agreed to advance as quickly as possible towards ending the dispute over cognac tariffs during their phone call.
The investigation was initiated after trade tensions flared between Beijing and Brussels, and it was seen as retaliation for Paris' support for EU tariffs on Chinese electric vehicles.
Xi emphasized that China and France, as permanent members of the UN Security Council, should strengthen cooperation to maintain international trade rules and the global economic order.
The cognac dispute is part of a larger context where both China and the EU are embroiled in trade disputes with the United States, highlighting the complexities of international trade relations.
Macron reaffirmed that Chinese investments are welcome in France, but he insisted that companies must enjoy equitable conditions in the market.
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